Allwyn is gearing up for the recovery of the millions invested in the transformation of the UK National Lottery, as the most financially taxing phases have now been completed.
In its Q1 preliminary results, the company reported that its UK capital expenditure (CAPEX) has shrunk by 44% to €18m (£15.6m), down from the €32m accumulated at the start of 2025.
Allwyn took the fourth National Lottery licence in 2024, and has since committed to a major modernisation of the lottery that was rolled out into two phases.
Back in August 2025, Allwyn fitted a large number of retail shops with brand new terminals, completing the first phase of its transformation campaign. Following that, January 2026 was the month that the company focused on renovating the National Lottery digital channels.
As a result, Allwyn accumulated total investment costs of £450m by the end of March.
Because the lottery had to be temporarily shut down on a number of occasions, and millions of customer accounts had to be migrated, UK GGR slightly dropped from €1bn to €942m. Meanwhile, Adjusted EBITDA went down by 56% to €4m when compared to €9m for the previous corresponding period.
However, with the biggest financial burden now out of the way, Allwyn has reassured investors that its UK business is well-equipped to now recover all expenses as it reaps the fruits of the modernisation.
“The completion of the transformation also marks the end of related operating costs (included in EBITDA adjustments) and a meaningful step-down in capital expenditure, both of which support improved cash generation. In Q1 2026, CAPEX declined to €18m, compared with €32m in the prior-year period,” Allwyn commented.
“Finally, with the transformation complete, the Group has commenced the recovery of transformation-related costs and CAPEX. A significant majority of the approximately £450m expenditure is expected to be recovered, with recovery commencing in the second quarter and supporting Adjusted EBITDA and cash flow generation.”